As the Fed begins its two-day meeting, global stocks have recovered their footing and European shares rise, led by a bounce in tech stocks as last Friday's global selloff that started in the sector shows signs of abating. Asian stocks and U.S. futures gain as investors turn their attention to today's Jeff Sessions testimony as well as tomorrow's barrage of macro data including Yellen, CPI and retail sales.
From "Blain’s Morning Porridge" by Bill Blain of Mint Partners
“We can work with fear.”
Interesting markets. Again. Tomorrow the Fed will Hike US rates by 25 basis points. The sell-off in Tech continues. The limited reaction to the UK Election howler continues to suggest we’re still short on understanding what it all means. European banks and financials continue to surprise.
The Chinese auto market is having it's own version of a "cash for clunkers" moment. After artificially pulling sales forward for all of 2016 with a purchase tax that was cut in half from 10% to 5%, the Chinese auto market is now suffering the consequences of removing that stimulus. As Reuters notes, Chinese auto sales have declined sharply so far in 2017 with April and May registering the first consecutive monthly declines since 2015.
Authored by Jeff Thomas via InternationalMan.com,
For many years, I’ve described black markets not as the evil danger to economies that governments profess them to be, but as predictable and sensible reactions to the overregulation of official markets.
While the June oil production data is still pending, it is safe to say that the June oil output from US shale producers - estimated today by the EIA at 5.348mb/d - will post the first double-digit production growth since July of 2015, when oil prices tumbled and a substantial portion of US production was briefly taken offline.
Chart courtesy of Forge River Research